The content is accurate at the time of publication and is subject to change.

A credit card grace period is the time between the end of your card's billing cycle and the date your payment is due. When you make a purchase with your credit card, most credit cards offer this grace period. Generally, grace periods last between 21 and 25 days after you receive your credit card bill or statement, which is regulated by the Credit Card Accountability Responsibility and Disclosure Act (CARD Act). You can check your credit card's terms and conditions to see information about your grace period.

During this time between the statement date and due date, you won't accrue interest on new purchases made during the previous billing cycle, provided you're not carrying a balance from your last statement.

Here's an example of how that might work:

  • You make a purchase of $200 with your credit card on January 1.
  • Your billing cycle ends on January 3.
  • And your payment is due on January 28.

If you're not carrying a balance and you pay in full before January 28, you won't owe any interest on purchases.

Credit card grace periods typically apply only to purchases. There is usually no grace period for the following circumstances:

  • Cash advances - these almost always begin accruing interest right away, and usually at a higher APR than the interest rate for purchases.
  • Balance transfers - like cash advances, interest can begin accruing immediately and at a different rate than the purchase APR.
  • Checks - if your credit card issuer sends you checks that you can use to pay bills or get cash, these also do not typically have a grace period, and a different APR may apply.

Also, if you carry a balance from one month to the next, the grace period requirement is dropped, and interest will be charged from the day you make a purchase. Even if you leave a small portion of your balance unpaid one month, the next month your purchases will accrue interest from the time you make the purchase.

To avoid paying interest, pay off your entire credit card bill in full every month before the due date.

Disclaimer: This editorial content is not provided or commissioned by the banks or credit card issuer(s). Opinions expressed here are the author's alone, not those of the banks or credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the banks or credit card issuer(s). Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult with the issuing bank of the card or account for terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are accurate as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.